Genworth may spin off mortgage insurance unit

from MarketWatch - http://www.marketwatch.com/news/story/genworth-says-may-spin-off

SAN FRANCISCO -- Genworth Financial said Tuesday it may spin off its mortgage insurance business as the insurer tries to reduce its exposure to the housing crisis.

Genworth shares surged 72% to close at $8.61 on Tuesday. The stock lost roughly half its value on Monday after the $700 billion government bailout plan failed in the House of Representatives, spooking investors. Genworth has lost two-thirds of its market value so far this year.

Genworth sells life insurance, long-term care coverage and offers retirement and wealth-management services, while also running an international unit. But investors have generally overlooked those businesses this year and worried about the company's mortgage insurance operations instead.

Genworth's U.S. mortgage insurance business may be worth more than $2 billion, UBS analyst Andrew Kligerman estimated in a note to investors. He has a buy recommendation on Genworth shares.

At ConectUS Insurance we strongly believe in this Insurance Company as a viable option to consider when seeking life insurance. Solid and stable. Genworth also highlighted more than $800 million in cash and cash equivalents at the holding company and almost $4 billion in cash and cash equivalents in its operating companies.